Question

Selling equity in the business provides both the opportunity to repurchase and the obligation to make payments to owners

Answer 1

The statement which says that selling equity in the business provides both the opportunity to repurchase and the obligation to make payments to owners is regarded as a true statement.

What is Equity?

This referred to the ownership of assets which usually have debts or liabilities connected to them. This is usually put up for sale by the stakeholders in order to raise funds to continue with the running of the business enterprise.

This is also referred to as shares and is bought by interested parties which own a stake in the company depending on the amount accrued . The owner usually receives the payment from the repurchase .

This therefore makes the statement mentioned above as a true statement in this scenario.

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